Jabong revenue jumps 19 percent, losses down to Rs 179 crore
Flipkart-owned fashion platform Jabong witnessed a 19 percent jump in its revenue to Rs 205 crore ($8.6 million) for the financial year ended March 2019.
The company managed to narrow its losses to Rs 179 crore, as against Rs 188 crore it had reported in the previous financial year, according to documents sourced from the registrar of companies (RoC).
Jabong’s losses decreased, as it reduced its total expenses by 6 percent year-on-year to Rs417 crore. However, the company’s employee and finance expenses for the fiscal continued to soar rising 22 percent and 140 percent, respectively.
U.S.-based retailer Walmart, which owns Jabong, had stated that it took a $290 million (Rs 1,929.3 crore) non-cash impairment following its decision to merge Flipkart’s two online fashion businesses, Myntra and Jabong.
“Earlier this year, we decided to consolidate back-office functions for Myntra and Jabong to drive efficiencies. In going through that process, the team decided to focus on a single premium fashion platform, Myntra. Since there was value ascribed to the Jabong name at the time of the Flipkart acquisition, we are taking a non-cash impairment charge on the trade name” Walmart’s chief financial officer, Brett Briggs, Biggs had said in a statement during the third-quarter results.
The merger of Flipkart’s fashion arms Myntra and Jabong had led to massive layoffs with as many as 150 employees getting the axe, as part of the integration process.
Myntra-Jabong, along with its parent firm Flipkart, continue to dominate the online fashion market and comprises around 70 percent market share in the country.
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